The maximum value of the property for eligible borrowers will rise between 10% and 15% depending on where the property is located, according to the statement.
The measures, which will take effect in about 60 days, are aimed at increasing access to affordable housing and boosting economic growth with more support for civil construction.
For example, families with income between 4,000 reais and 7,000 reais ($762-1,333) will be eligible for a 7.66% mortgage rate, representing a 0.5 percentage point reduction from the current 8.16% rate.
The government also announced a temporary reduction in mortgage rates through the end of next year.
($1 = 5.25 reais) (Reporting by Paula Laier in Sao Paulo and Lisandra Paraguassu in Brasilia; Writing by Ana Mano; Editing by Mark Porter)
The government also plans a gradual increase in the budget for the subsidized mortgage program, called “Casa Verde e Amarela,” increasing spending by 15% by 2024.